Trump Exaggerates Deficits With China, Canada, Mexico, And EU

President Donald Trump has repeatedly exaggerated the size of U.S. trade deficits with various countries.

While trade deficits fluctuate due to various economic factors, Trump continues to claim that President Joe Biden allowed the deficit with China to “get out of hand.”

Now, as he cites those deficits as justification for his tariff policies, newly released federal data reveals just how inaccurate his claims are, Daniel Dale reported for CNN on March 7, 2025.

Federal figures for 2023 and early 2024 had already demonstrated that Trump’s claims about U.S. trade deficits with Canada, Mexico, China, and the European Union (EU) were significantly overstated. While Trump describes trade deficits as subsidies or losses, a deficit does not mean the U.S. is simply giving away money.

The U.S. trade deficit with Canada is not $200 billion. In reality, the 2024 deficit in goods and services trade was $35.7 billion, down from $40.6 billion in 2023.

Even if counting only goods—excluding the services trade where the U.S. has an advantage—the 2024 deficit with Canada was $70.6 billion, compared to $72.3 billion in 2023.

Trump also inaccurately claims the trade deficit with Mexico is $350 billion. Federal data shows the 2024 deficit in goods and services trade with Mexico was $179 billion, up from $162.1 billion in 2023.

In goods trade alone, the 2024 deficit was $181.5 billion, rising from $161.4 billion in 2023.

Trump further asserts that the U.S. trade deficit with China exceeds $1 trillion—an enormous exaggeration.

Federal figures indicate that the 2024 deficit in goods and services trade with China was $263.3 billion, up from $252.1 billion in 2023 but lower than in every year of Trump’s first term.

While trade deficits fluctuate due to various economic factors, Trump continues to claim that President Joe Biden allowed the deficit with China to “get out of hand.”

Trump has also harshly criticized the European Union over trade, telling reporters in February that the U.S. runs a "$350 billion deficit" with the bloc. He later revised the claim to “about $300 billion.”

However, the new federal figures show that the 2024 deficit in goods and services trade with the EU was actually $161.1 billion, up from $125.1 billion in 2023—far below Trump’s stated numbers.